Nel ASA — Investor Presentation 2016

May 4, 2016

NEL ASA General Update May 2016 Jon André Løkke, CEO

NEL Q1 HIGHLIGHTS

• Financials reflecting high activity level in new markets and preparation for production ramp up
• Final agreement with Uno-X for a nationwide hydrogen station network in Norway
• Contract for delivery of first station with integrated production to Uno-X Hydrogen
• Announced plan for NOK 85 million facility for station production in Herning, Denmark
• Initiated feasibility study "Hyper" for largescale hydrogen production in Norway
• Letter of Intent establish a large-scale, lowcost hydrogen production facility in Glomfjord Industrial Park in Meløy, Norway

(NOK million)	2016 Q1	2015 Q1	2015
Revenue	26.0	17.6	99.9
EBITDA	-7.6	1.5	2.6*
EBIT	-10.1	-2.1	-18.3
Net profit	-9.7	-0.6	-21.7
Cash balance	289	165	313

*Adjusted EBITDA excludes Q2 2015 transaction costs related to acquisition of H2 Logic.

A PURE-PLAY HYDROGEN COMPANY

Upstream Downstream

• 1. RENEWABLE ELECTRICITY IS BECOMING COMPETITIVE
• Needs storage solutions to realize the full potential
• The key is not the cost of energy, but the cost of storage
• 1. HYDROGEN CARS BECOMING AVAILABLE AND AFFORDABLE
• Focus on zero emission transport
• Major car companies launching ambitious programs

RENEWABLE ELECTRICITY BECOMING COMPETITIVE

HYDROGEN CARS BECOMING AVAILABLE & AFFORDABLE

• Hyundai, Toyota, Honda, BMW, Daimler, GM, Nissan, Ford, Audi, and Volkswagen have all launched, or announced launch, of FCEVs
• Formidable cost reductions enable introduction: "The Toyota Mirai's powertrain is 95% cheaper to build than the fuel-cell system in the 2008 Highlander fuel cell SUV" 1

HYDROGEN PRODUCTION (UPSTREAM)

ABOUT THE PRODUCTS

• Global leader within large scale hydrogen electrolyser plants
• Highest uptime, lowest conversion cost, robust and reliable
• New technologies:
• 1. Pressurized electrolyser, containerized solution, pre-assembled before delivery - reduced time for installation and commissioning
• 1. Compact game-changing technology - Rotolyzer

CUSTOMERS

LONG TRACK RECORD & HIGHLY SCALABLE

• World leading supplier of technology for hydrogen production
• Delivered >500 large scale electrolysers in >50 countries
• Scalable production capacity for industrial and energy/transport applications

Multiple modules plant Unlimited capacity

100-1.000kg/day module Flexible upgrade

ROTOLYZER DEVELOPMENT ON TRACK

Rotating electrolyser – several advantages:

Optimal production and flow of hydrogen and oxygen

• Cost efficient and compact
• Dramatically increased active area on electrodes → less material needed → more compact
• Increased gas-lye separation and less distance between electrodes → increased efficiency due to less ohmic resistance

Pressurized stack

• Higher pressure → more compact & no need for 1st stage compression downstream
• Works as a centrifugal pump no need for lye pumps

*cell stack, compared to atmospheric alkaline

GLOMFJORD HYDROGEN

• LoI to establish Glomfjord Hydrogen AS for potential development of large-scale, lowcost hydrogen production in Glomfjord Industrial Park in Meløy, Norway
• The plant can provide hydrogen for industrial applications, as well as personal- and public transportation
• Increased demand for hydrogen from reviewable sources, with initial target capacity of 6000 kilograms of low-cost hydrogen per day

Proud history of large-scale hydrogen production: The world's largest hydrogen electrolyser plant in Glomfjord, Norway, until the 1990s (daily capacity of 65 tons)

HYDROGEN REFUELLING (DOWNSTREAM)

H2 LOGIC

• World leading supplier of hydrogen refuelling stations
• More than 29 stations delivered in 8 countries across Europe
• More than 14.700 refuellings (33 tons of hydrogen)
• Strategic collaboration with Mitsubishi Kakoki Kaisha in Japan
• Currently developing market entry strategy for California

H2STATION® CAR-200 FOR CARS

• One-module system with fast installation
• 3x capacity, 1/3 footprint of previous model
• Standardized and module based design
• Industrial production
• Patented technology

H2STATION® FOR LARGE VEHICLES

• Easy and fast installation
• 35MPa fuelling for large and small fleets of industrial vehicles or buses
• Flexible hydrogen supply
• Patented fueling technology

HYDROGEN MARKET HIGHLIGHTS YTD

• Honda Clarity launch in Japan
• Toyota communicates Norway and Sweden as priority markets
• Announcement of new GFO/PON in California (see below)
• Japanese government announced target of 800.000 FCEV in 2030 and 40.000 already in 2020
• Also increased target for hydrogen refueling stations to 160 by 2020 and 320 by 2025
• Danish FCEV's crossed 1mio km driven on renewable hydrogen from electrolyser dispensed from H2 Logic stations

Number of hydrogen refueling stations planned in key markets

CALIFORNIAN MARKET PROGRESS

• California Energy Commission recently launched new GFO/PON
• A competitive bid process for funding additional hydrogen refuelling stations
• California has set at side up to USD 20 million per year to reach 100 hydrogen refueling stations by 2020
• Deadline for application submission July 15th , 2016
• Allocation expected during Q4'16

Map of hydrogen stations in California

Source: California Fuel Cell Partnership www.cafcp.org

H2STATION® CAR-200

• New generation H2Station® for 70MPa fuelling, designed for EU and USA
• 1 hose configuration with 200kg per day, prepared for upgrades
• Peak "rush hour" capacity of up to 100kg per 3 hours on 1 fuelling hose
• Dimensioning of storage fully flexible to fit any demand and supply source

Capacity	CAR-200	1/4 Footprint		Triple capacity
1 hour	20-33kg	10 m2	CAR-200	100 kg / 3 hours
3 hours	60-100kg	m2 30	CAR-100	30 kg
12 hours	160 kg
24 hours	200 kg

9 times greater capacity per m² compared to H2Station® CAR-100

NEW COMPACT HYDROGEN DISPENSER

• CAR-200 features new dispenser designed solely for hydrogen refuelling
• Size of only one third of conventional dispenser, can be placed next to gasoline/diesel dispensers
• Flexible placement at site, up to 50m away from H2Station®
• No equipment underground
• Useable from any side
• Shares fueling lane with gasoline/diesel
• Intuitive designed user-interface

BUILDING THE WOLD'S LARGEST PRODUCTION PLANT

KEY INFORMATION

• Total capex of NOK 85 million, incl. land, building and production equipment
• Name-plate capacity of up to 300 refueling stations per year
• Next generation refueling stations ready for volume production according to lean principles
• Will ensure continuous improvement and scale benefits

HYDROGEN SYSTEMS

PRODUCT AND SERVICES

• System integration, project development and sales
• Operation, maintenance, ownership and financing solutions
• Particular focus on new markets like California, Japan
• But also existing markets like Germany and Scandinavia

REFUELLING NETWORKS

• Develop entire refueling networks, incl. renewable hydrogen production
• Network monitoring services
• Service and maintenance

RENEWABLE HYDROGEN & STORAGE SOLUTIONS

• Energy storage solutions and "constant" renewable supply
• Production based hydro, wind or solar
• Large, medium or small scale

DELIVERED THE ENTIRE DANISH NETWORK

The world's first country wide network in daily operation:

• NEL services and operates entire network
• In collaboration with leading oil, energy and gas companies*
• 100% of hydrogen from electrolysis
• 6 stations with onsite electrolysis
• 5 stations with centralized NEL electrolysis
• All stations approved by OEM's
• Same approach in other markets

BUILDING HYDROGEN NETWORK IN NORWAY

UNO-X HYDROGEN AS

• Joint Venture between Uno-X and NEL
• Target to build minimum 20 hydrogen refuelling stations in Norway by 2020
• Realization depend on public support
• First station to be located at Kjørbo, Sandvika
• Use excess solar power from local office building for on-site hydrogen production

• Benchmark project, not yet seen anywhere in the world

• Launched next generation refuelling station with standard modular design, ideal for industrial production, according to continuous improvement principles

• Continue to capture market shares, both upstream and downstream, with increased focus on renewable hydrogen production and energy storage
• Execution of market penetration strategy for California, both upstream and downstream, work together with selected partners or directly in the market
• To build the organization, align activities, and capture the synergies across the NEL group

Thank you!